Your insurance rate is calculated based on a variety of factors. Mainly, insurance providers want to know how old you are and what your driving experience is. The older you are, the better your rate will be because you've had more experience driving. Have you ever asked yourself 'Why is car insurance so expensive?' If your insurance premium is high, it could be due to recent claims you've made to your insurance company or because of driving violations such as:

Speeding tickets

At-fault accidents

DUIs

Other causes of high premiums could be for reasons that are out of your control. These include:

High rate of insurance claims in your neighborhood

Legislation that's been passed in your state (which could raise rates for a variety of reasons)

What Causes High Insurance Rates?

You'll find that car insurance rates are high for a number of factors. Insurance companies calculate the rate they will charge you based on:

Age

Marital status

Lapse in coverage

Type of vehicle you drive

How much you drive

Driving history

Credit score

Where you live

It may seem unfair that your age plays such an important factor in determining your insurance premium, but there is a good reason for using this. Younger drivers, especially men, are riskier drivers, which is why they will ultimately pay more for their insurance, according to Cover. Of course, this is only until the age of 25, and once you hit 30, the rates will even out.

Marital status is another factor that may seem like it shouldn't be taken into consideration when calculating your insurance rate. However, insurance companies view married people as more stable and less likely to be involved in an accident says insurify. In fact, unmarried drivers are at a much higher risk of being involved in a serious accident than their married counterparts.

To help keep your premium low, don't let your coverage lapse. This means you need to keep paying your insurance every month. If you get dropped by your insurance company for not paying, it will cost you when you need to get insurance again. Even if you decide you don't need insurance because you aren't driving or a short amount of time goes by while you switch insurance providers, you're going to end up paying more when you do reinstate a policy.

Depending on the type of vehicle you own, you could end up paying a lot for car insurance. For example, if you own one of the fastest sports cars on the market, one that goes from zero to 60 in 2.7 seconds, you're going to pay more for insurance than someone driving a Mercedes-Benz Sprinter van. The reason for this should be obvious. If your car can accelerate quickly, then chances are, you will accelerate quickly. This is, of course, riskier driving behavior and will cost you when it comes to insurance rates.

The amount of time you spend on the road also comes into play when your insurance rate is being calculated. Being on the road a lot means the chances for you to be in an accident are increased, which puts you at a higher level of risk. Not only are you more likely to be in an accident, but you're putting more wear and tear on your vehicle. This could result in more break downs and other factors that cause insurance companies to have to pay out.

Drivers with a bad driving history will pay more for their insurance premiums shares The Zebra. If you've had several claims on your insurance, especially recently, you can expect to pay for it. On the other hand, if you've been accident-free for years, you will benefit when it comes to your car insurance rate. Your experience behind the wheel also comes into play, as drivers who have been on the road a lot are less likely to cause an accident. This is why teen drivers and those under 25 tend to pay more for insurance.

Your credit score is another factor that insurance providers will look at when providing you with a quote. This is because studies have shown that a low credit score is correlated to riskier driving behaviors. In addition, your zip code plays a part in determining what you will pay for car insurance. If car thefts or break-ins are common in the area where you live, your premium will be higher. Also, traffic conditions in your neighborhood will be taken into account. When there's more traffic, there are more accidents.

Ways to Lower Your Insurance Rate

There are steps you can take to help you lower your car insurance rate. Consider some of the following ideas when trying to get your monthly bill down:

Shop around

Look into discounts

Pay ahead

Reduce coverage

Get a new car

When you shop around, explains Value Penguin, you can ensure you're getting the best possible rate. These days, it's so easy to do. Just input your information into the insurance providers' website and wait for the quote to come back. This is also a good time to look into discounts. Auto insurers want your business, and they often offer discounts or incentives for using their services. You can talk to your agent about any that you might qualify for. Don't hesitate to inquire about discounts when you're shopping around, too.

Making monthly payments can seem like less money upfront, but you can save a lot by paying yearly premiums instead. It might be difficult to come up with such a large lump sum at first, but once you start to realize the savings, you'll be glad you opted for this route. You can also try reducing the amount of coverage you carry, Dave Ramsey tells us. You may have coverage on your policy that you don't need, like GAP insurance. Getting rid of these types of coverage will save you money. Stick with just the coverage that's right for you.

The type of vehicle you drive definitely affects your insurance rate, so if you can switch to a less expensive vehicle it could be beneficial. Some of the cheapest cars to own include:

Hyundai Elantra

Kia Forte Sedan

Suzuki SX4 Sedan

Kia Soul

Kia Rio Sedan

If you need to lower your insurance rate, switching to one of these vehicles could pay off.

Car insurance is expensive, but it is a necessary expense. Keep the reasons listed here in mind the next time you're considering ways to reduce your monthly car insurance bill. These tips could help you potentially save hundreds of dollars.

This content is created and maintained by a third party, and imported onto this page to help users provide their email addresses. You may be able to find more information about this and similar content at piano.io

This commenting section is created and maintained by a third party, and imported onto this page. You may be able to find more information on their web site.